A labour hire worker is a worker that is temporarily assigned/supplied to SBS (the "host") from another organisation, usually known as an ‘agency’. SBS’s contract is with the agency, not the labour hire worker directly and SBS does not "employ" the labour hire worker. SBS pays the agency a fee for the supply of the worker. The agency is responsible for providing their employees with employment entitlements such as minimum wages and leave. Labour hire workers are also known as "agency employees" or "on-hire employees".
The 3 way arrangement is set out in the diagram below, with SBS being the "Host firm".
SBS's obligations in relation to labour hire workers
In order to engage a labour hire worker, you must comply with the Labour Hire Worker Guidelines which contains information about when labour hire workers can be used, the process for engaging a labour hire worker and supervisory responsibilities.
A key requirement of the Labour Hire Worker Guidelines is that you must ensure that there is a commercial contract between SBS and the agency which sets out the terms of the arrangement. The labour hire worker is not a party to the commercial contract. If the agency des not have suitable standard terms in accordance with the Guidelines, you must use the SBS Labour Hire Agreement Template.
SBS has a responsibility to labour hire workers in relation to workplace health and safety, as well as obligations under State and Commonwealth equal opportunity legislation to ensure that labour hire workers are not subjected to discrimination or harassment. Labour hire workers are also protected under the Fair Work Act 2009 (Cth) in relation to general workplace protections including unlawful workplace discrimination.
SBS can also be liable for contraventions of the Fair Work Act 2009 (Cth) (such as the labour hire worker not receiving their minimum entitlements from the agency) if it is involved in the contravention. Involvement can include inducing the contravention through threats or promises, being knowingly concerned in or party to the contravention, or conspiring with others to bring about the contravention.
All labour hire workers must be inducted as if they are an employee. See the Guidelines for further information about the induction requirements.